Bunnings Warehouse Takanini has been sold for $26,500,000 following a strong response to the tendering of the property.
Located on a 1.7ha corner site at 167-173 Great South Road, the 10,433sqm Bunnings Warehouse was sold with a new 12-year lease back to Bunnings at a 5.24% yield through Dave Stanley, James Chan and Tony Chaudhary of Bayleys Real Estate. It was the first Bunnings Warehouse property in Auckland to be offered for sale in 2016.
“The property attracted very strong interest with a large number of tenders received from Auckland and Wellington based investors as well as from offshore parties”, Stanley said. “The low yield achieved for the property reflects a combination of factors that made it a very compelling investment. These included a high quality, modern building located on a very high profile site in one of Auckland’s fastest growing areas, with a long lease to one of Australasia’s best retail covenants.”
Bunnings Warehouse Takanini is on the corner of main arterial Great South Road and Graham Street and opened in December 2013. Bunnings General Manager New Zealand Jacqui Coombes said the sale was in line with the group’s long term strategic approach of releasing capital on lease terms which provide flexibility to Bunnings from an operational perspective, while providing investors with exposure to high quality retail properties backed by the strength of the Bunnings covenant.
Stanley said the area immediately surrounding the Bunnings’ Takanini store has developed into a significant retail precinct occupied by a large number of national and international brands. Nearby neighbours include Countdown, Pak‘nSave, The Warehouse and a host of smaller retail and convenience stores many of which are located within the Southgate Shopping Centre and Takanini Village.
“Takanini has experienced significant expansion in the last five to 10 years and that growth looks set to continue with a second stage of retail development planned for Takanini Village and 469 hectares of land zoned Future Urban under the unitary plan which could accommodate up to an estimated 4,500 new dwellings,” Stanley said.